Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21
The History of Bitcoin Hard Forks - 10th Apr 21
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21
Investing in Google Deep Mind AI 2021 (Alphabet) - 6th Apr 21
Which ETFs Will Benefit As A Stronger US Dollar Reacts To Global Market Concerns - 6th Apr 21
Staying Out of the Red: Financial Tips for Kent Homeowners - 6th Apr 21
Stock Market Pushing Higher - 6th Apr 21
Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending - 6th Apr 21
Editing and Rendering Videos Whilst Background Crypto Mining Bitcoins with NiceHash, Davinci Resolve - 5th Apr 21
Why the Financial Gurus Are WRONG About Gold - 5th Apr 21
Will Biden’s Infrastructure Plan Rebuild Gold? - 5th Apr 21
Stocks All Time Highs and Gold Double Bottom - 5th Apr 21
All Tech Stocks Revolve Around This Disruptor - 5th Apr 21
Silver $100 Price Ahead - 4th Apr 21
Is Astra Zeneca Vaccine Safe? Risk of Blood Clots and What Side Effects During 8 Days After Jab - 4th Apr 21
Are Premium Bonds A Good Investment in 2021 vs Savings, AI Stocks and Housing Alternatives - 4th Apr 21
Penny Stocks Hit $2 Trillion - The Real Story Behind This "Road to Riches" Scheme - 4th Apr 21
Should Stock Markets Fear Inflation or Deflation? - 4th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Gold and Silver Struggling to Digest Global Events

Commodities / Gold and Silver 2011 Mar 29, 2011 - 08:11 AM GMT

By: Adrian_Ash

Commodities

Best Financial Markets Analysis ArticleTHE PRICE OF SILVER and physical gold bars held in a 0.5% range in London dealing on Tuesday, sitting tight above yesterday's 1-week lows against the Dollar as global equities stalled and the US currency rose on the forex market.

Government-bond prices also slipped, and commodity markets lost up to 1%.


London's FTSE100 stock index fell back to 5,900 – a two-year high when reached in late Dec. 2010.

"There's a lot of worries weighing on all market as we near quarter's end," says a London gold dealer in a note.

"It is...a wonder that the generally risk-aware investors in Germany have not strongly come back to the physical gold market," says Heraeus head of sales Wolfgang Wrzesniok-Rossbach in Hanau.

Calling sales of gold bars in Heraeus' domestic market "within the normal scale", even last week's Euro-gold drop to 1-month lows beneath €1000 per ounce "did not rekindle physical demand beyond the normal," he writes in the refining group's latest Precious Metals Weekly.

Despite "dip buying" reported by Asian traders on Tuesday, gold prices moved in a 0.5% range above $1412 per ounce, slipping back as the US Dollar knocked the Euro lower and pushed the British Pound to new two-month lows beneath $1.5950.

That kept the gold price in Sterling above £882 per ounce and helped the Euro price recover to €43,300 per kilo (€1008 per ounce).

Short-term in wholesale gold bar trading, "The clear trend over the past three days has been for lower highs and lower lows," says Japanese conglomerate Mitsui's London team, "but the market feels a bit non-committal at the moment as we attempt to compute everything that is happening in the world."

Syria's prime minister and cabinet today handed their joint resignation to 11-year president Bashar al-Assad following two weeks of anti-government protests that have seen 60 people killed.

Pro-Gaddafi forces meantime pushed rebel Libyan troops back some 30km, while an international conference on continued UN-NATO airstrikes began in London.

Japanese prime minister Naoto Kan told the Tokyo parliament that his government is "in a state of maximum alert" over the ongoing nuclear crisis in earthquake-hit Fukushima prefecture, some 150km away.

The outlook for gold prices "remains overall bullish," writes Axel Rudolph  in his latest technical analysis research for Commerzbank clients, pointing next to the "November-to-March resistance line at $1458.50...

"If exceeded, the $1500 region will be in sight longer term."

But "Silver continues to push higher and outperforms other precious metals," says Rudolph, citing "the psychological 40 area" where he would expect the silver price "to lose upside momentum, at least temporarily."

Tuesday's benchmark pricing for wholesale silver was set at $36.62 per ounce at the London Fix – more than 3% off last week's new 31-year high.

Sunday marked the 31st anniversary of "Silver Thursday", when a one-day loss of $1 billion forced Texan oil barons the Hunt brothers to abandon their attempted corner of the entire global market.

Jan. 1980 saw  the Hunt brothers holding some 180 million ounces of silver bullion, more than a third of the world's non-government and non-industrial stocks. But sharply rising interest rates, plus a clampdown on their "speculation" by US regulators, found them unable to settle outstanding contracts. They filed for bankruptcy in Sept. 1988.

Last week, according to data from London's VM Group consultancy, silver investment holdings worldwide rose 2.1%, hitting 796 million ounces across exchange-traded funds and derivative products traded in New York.

"Imagine having the entire world speculate on what's going on at one [good-sized] company," says Tom Winmill, president of the Midas group and manager of the $131 million Midas Fund.

"That's what's going on lately in the silver market," Winmill is quoted by Fortune magazine, likening the $27 billion annual output of the global silver mining industry to a publicly-listed firm "such as, say [computer manufacturer] Dell."

Over in base metals, "Falling Chinese property prices, perhaps combined with a government clampdown on alternative sources of funding, would be a devastating outcome for the copper market," says a new report from Standard Bank's commodities team – quoted at length by the FT's Alphaville blog – confirming that property developers in particular have been using  deferred-payment purchases of copper to raise fresh loans for re-investment elsewhere in China's fast-growing economy.

"Anecdotally, something in the region of 600,000 million tonnes of refined copper is currently sat in bonded warehouses in Shanghai," says Standard – around two-fifths of China's net annual demand – with up to 80% of that metal bought on letters of credit and used to create a borrowing vehicle enjoying "very attractive" costs amid China's tightening bank lending landscape.

By Adrian Ash
BullionVault.com

Gold price chart, no delay   |   Buy gold online at live prices

Formerly City correspondent for The Daily Reckoning in London and a regular contributor to MoneyWeek magazine, Adrian Ash is the editor of Gold News and head of research at www.BullionVault.com , giving you direct access to investment gold, vaulted in Zurich , on $3 spreads and 0.8% dealing fees.

(c) BullionVault 2011

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules